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Showing contexts for: act apprentices in M/S.Sri Harikrishna Paper (P) Limited vs E.S.I.Corporation on 12 July, 2023Matching Fragments
3.The primary contention of the management before the ESI Court was that the definition of employee under Section 2(9) of the E.S.I.Act does not include an apprentice or a trainee. Therefore, the stipend or https://www.mhc.tn.gov.in/judis CMA(MD).Nos.921 and 953 of 2018 wages paid to the trainees could never be considered to be wages under Section 2(22) of E.S.I.Act. The Hon'ble Supreme Court in a judgment reported in (1975) 2 SCC P 835 (The Employees' State Insurance Corporation and another Vs. The Tata Engineering & LOCO Motive Co.Ltd., and another) has held that there is no provision to cover the apprentices under E.S.I.Act. However, it pointed out that the parliament has got power to amend the E.S.I.Act and to incorporate necessary provisions to cover apprentices and trainees. Subsequent to the said judgment, the E.S.I.Act was amended with effect from 20.10.1989 under Central Act 29 of 1989. Under the Amended Act, Section 2(9) of the Employees' State Insurance Act, 1948 was amended to cover the apprentices except those who were appointed under Apprentices Act, 1961 or appointed under the Standing Orders of an establishment.
4.It was further argued on the side of the management that the term 'establishment' would also include a factory and therefore, any apprentice appointed under the Certified Standing Order of a factory is also exempted after the Central Amendment Act 29 of 1989. The orders under Section 45-A of the E.S.I.Act have been passed with regard to both the factories only relating to the period prior to 01.06.2010. Because with https://www.mhc.tn.gov.in/judis CMA(MD).Nos.921 and 953 of 2018 effect from 01.06.2010, Section 2(9) of the E.S.I.Act was further amended granting exemption only to the apprentices engaged under Apprentices Act 1961. The Apprentices appointed under the Certified Standing Order of an establishment are not exempted. Therefore between 20.10.1989 and 31.05.2010, the apprentices appointed under Certified Standing Order of a factory are also exempted. It was further contended that the term 'establishment' would include the meaning of a factory. Therefore, merely because the term 'establishment' is used under Section 2(9) of the E.S.I.Act, it does not mean that the exemption is applicable only to the establishment, but it is also applicable to the factories. Since apprentices and trainees are exempted under the Act, the orders passed by the Corporation under Section 45-A of the Act are without jurisdiction and hence,they had prayed for setting aside those orders.
12.I have considered the submissions made on either side and perused the records and citations paced by both the counsels.
13.It is not in dispute that the appellant in both the appeals are factories and their employees are covered under ESI Act. The dispute arose when the E.S.I.Corporation demanded contribution from these managements for the apprentices/ trainees who were appointed under the Certified Standing Orders of the factory. The E.S.I.Corporation claimed https://www.mhc.tn.gov.in/judis CMA(MD).Nos.921 and 953 of 2018 that only those employees who were appointed under Apprentices Act 1961 were exempted. Those employees under the Apprentices Act, 1961 and those employees of an establishment are exempted. However, the apprentices appointed under Certified Standing Orders of a factory are not exempted on the ground that the term 'establishment' does not include a factory but it refers only to a non-factory establishment.
(a). the apprentices engaged under Apprentices Act 1961 or
(b). the Apprentices appointed under Certified Standing Order of an establishment.
18.Therefore, it is clear that any other apprentices who are appointed under any other mode are coverable under the provisions of the E.S.I.Act. The definition of employee was further amended under the Central Act 18 of 2010 with effect from 01.06.2010. As per the said amendment only apprentices engaged under Apprentices Act, 1961 were https://www.mhc.tn.gov.in/judis CMA(MD).Nos.921 and 953 of 2018 exempted and all other apprentices were brought within the purview of E.S.I.Act.